Solar PV Panels Market to Nearly Double by 2031, Reaching US$349.9 Bn - Persistence Market Research

As global economies pivot toward sustainable energy systems, the solar photovoltaic (PV) panels market has emerged as a pivotal force in decarbonizing electricity generation. Solar PV panels harness the photovoltaic effect-converting sunlight into usable electricity-and are instrumental in reducing dependence on fossil fuels, mitigating greenhouse gas emissions, and facilitating energy independence. As of 2024, the global solar PV panels market is valued at approximately US$188.5 Bn and is projected to ascend to US$349.9 Bn by 2031, expanding at a compound annual growth rate (CAGR) of 9.2%.

The rapid expansion of this market is driven by several key factors: increasing environmental consciousness, ambitious renewable energy targets set by global governments, and continued technological breakthroughs that improve panel efficiency and reduce costs. The industrial sector currently leads the market in demand generation, owing to its need for high-volume and consistent energy supply. Regionally, Asia Pacific stands at the forefront, accounting for 53.5% of the market share in 2023. This dominance is attributed to aggressive solar adoption policies, rapid industrialization, and an increasing energy appetite across countries like China, India, and Japan.

✦ Key Highlights from the Report

✦ The global solar PV panels market is set to grow at a CAGR of 9.2% between 2024 and 2031.
✦ Rising environmental concerns and policy support are primary market growth drivers.
✦ China leads the global solar PV manufacturing capacity expansion.
✦ The industrial sector dominates the market by end-use application.
✦ Advancements in solar technologies like thin-film and perovskite cells enhance performance.
✦ Government-backed star labeling initiatives are boosting consumer trust in solar panels.

Market Segmentation

The solar PV panels market is segmented by product type, technology, and application. By product type, the market includes grid-connected and off-grid systems. Grid-connected solar systems dominate due to their integration into national electricity grids and ability to supply surplus electricity back into the system through net metering. Off-grid systems are primarily adopted in rural or remote areas with limited grid access, especially in developing nations.

By technology, crystalline silicon remains the most widely adopted, known for its high efficiency and long lifecycle. However, thin-film technology, which held over 41.5% market share in 2023, is gaining traction due to its lightweight, flexible nature, and ease of installation. Sub-technologies under thin-film, such as cadmium telluride (CdTe) and copper indium gallium selenide (CIGS), are becoming increasingly popular for applications in building-integrated photovoltaics (BIPV).

In terms of application, the industrial sector leads the charge, driven by a growing demand for cost-effective and sustainable energy sources to power large facilities. Residential and commercial segments are also growing steadily, particularly in regions offering financial incentives and tax rebates for solar panel installation. Additionally, the utilities segment is expanding as large-scale solar farms become central to national renewable energy goals.

Regional Insights

Asia Pacific remains the epicenter of global solar PV panel adoption. In 2023, the region accounted for 53.5% of the market. Countries like China and India are investing heavily in solar infrastructure to meet growing energy demands while reducing carbon emissions. China's dominance is further bolstered by its massive manufacturing capabilities, which have helped drive down global panel prices.

North America follows closely, particularly the United States, where federal tax credits and net metering programs continue to stimulate both residential and utility-scale solar projects. Europe is characterized by progressive renewable energy targets, with countries such as Germany, Spain, and the UK investing heavily in decentralized solar systems and rooftop installations.

Latin America, the Middle East, and Africa are emerging as promising markets. Government-backed electrification initiatives and abundant sunlight make solar PV panels a feasible and attractive option for off-grid and mini-grid applications in rural areas.

Market Drivers

One of the primary forces behind the market's rapid growth is the increasing environmental awareness among individuals, governments, and corporations alike. With the global urgency to curb carbon emissions, solar PV panels have become an indispensable part of climate action plans.

Technological advancements have also played a crucial role, particularly the integration of energy storage systems with solar PV solutions. Innovations in lithium-ion batteries and other storage methods now allow energy generated during the day to be used during peak hours or at night, thereby addressing the intermittency challenge of solar energy.

The corporate sector is making large-scale commitments to procure renewable energy. By entering into long-term power purchase agreements (PPAs) with solar providers, businesses not only hedge against volatile energy prices but also strengthen their sustainability credentials.

Additionally, government incentives such as subsidies, feed-in tariffs, and tax benefits are making solar installations more financially accessible to consumers and businesses.

Market Restraints

Despite its growth trajectory, the solar PV panels market faces challenges, notably supply chain disruptions. The COVID-19 pandemic, coupled with geopolitical instability, has impacted the availability of critical materials like silicon and aluminum. Rising material costs and transportation delays contribute to increased manufacturing expenses and delayed project completions.

Another significant restraint is policy and regulatory uncertainty. Inconsistent or frequently changing government policies regarding solar incentives, tariffs, and grid connectivity can deter investment. Developers and stakeholders require a stable policy environment to commit to long-term projects, and ambiguity in this realm can slow adoption rates.

Market Opportunities

The future of the solar PV panels market lies in technology integration and digitalization. Combining PV panels with smart grids, AI-based energy management, and blockchain-enabled peer-to-peer energy trading platforms opens new frontiers in efficiency and consumer engagement.

Emerging markets present vast untapped potential, especially in Africa, Southeast Asia, and Latin America. Here, off-grid solar installations can bring electricity to underserved populations, contributing to both market growth and social development.

Furthermore, decentralized energy models and urban infrastructure integration-such as building-integrated photovoltaics and solar rooftops-offer scalable opportunities in both developed and developing economies.

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✔ Gain detailed insights into market dynamics, trends, and growth projections.
✔ Understand regional developments and opportunities across diverse geographies.
✔ Analyze competitive strategies and recent innovations by top market players.
✔ Access reliable market data to support strategic business decisions.
✔ Stay ahead of regulatory shifts and technological advancements in the solar PV sector.

Company Insights

• First Solar
• Sharp Corporation
• Wuxi Suntech Power Co., Ltd
• Array Technologies, Inc.
• Yingli Solar
• SunPower Corporation
• Acciona Energy
• Canadian Solar Inc.
• Titan Tracker SL
• NextEra Energy Resources LLC
• NRG Energy Inc.
• BHE Renewables LLC

Recent Developments:

October 2023: The Indian government launched the "Standards & Labelling Programme" for solar panels, led by the Bureau of Energy Efficiency (BEE), promoting transparency and performance labeling starting January 2024.

September 2023: First Solar announced plans to build a new manufacturing plant in the U.S. to meet growing domestic demand and minimize supply chain risks.

Conclusion

The solar PV panels market is at the heart of the global energy transformation. With rising awareness about environmental impacts, continuous technological evolution, and firm regulatory backing, the market is poised for consistent growth through 2031 and beyond. Asia Pacific will continue to dominate, driven by massive demand and production capacity, while opportunities in North America, Europe, and emerging economies remain significant. However, to unlock the full potential of solar energy, the industry must address supply chain complexities and policy uncertainties. By embracing innovation, expanding into new markets, and aligning with global sustainability goals, stakeholders in the solar PV panels market can contribute to a cleaner, more resilient energy future.

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